Introduction:

Form 12BA covers perquisites received as benefits or reimbursements, which are included in their salaries. Income tax applies to these other benefits, allowances, or fringe benefits described in Form 12BA. It is about such benefits, including amenities, perks, and other peripheral benefits, whether monetary or nonmonetary.

Form 12BA:

Form 12BA is an income tax return listing priorities, allowances, benefits in lieu of wages, and other fringe benefits. This includes the value of these payments and the amount of tax payable by the assessee to the Central Government.

Apart from salary, employees get various perquisites.

Perquisites, commonly referred to as perks, are the benefits that an employee enjoys due to their job or position. These perks can be either monetary or non-monetary.

Monetary perks: Perks provided in the form of cash payments are classified as monetary perks, whether the employer directly disburses the payment or reimburses the employee for incurred expenses. For instance, education expenses, medical bills, gas bills, helper salaries, electricity bills, vacation expenses, and similar costs of employees are either reimbursed by the employer or paid directly to the respective service provider on behalf of the employee.

Non-monetary perks: Benefits in kind are considered non-cash benefits. Here are examples of non-monetary perk.

Provision of rent-free accommodation or accommodation at a concessional rate by the employer.

Employer contributions to an approved superannuation fund.

Format of Form 12BA:

Form 12BA is a statement describing perquisites, fringe benefits or other facilities, and benefits in lieu of salary, including the value of each. An employer gives it to an employee on or before June 15 of the next fiscal year.

Form 12BA includes the following information:

• Form12BA includes the name and address of the employer.
• Form12BA also includes TDS assessment by the employer.
• Income under the head “Salaries” of the employee, excluding income from perquisites, is also mentioned in Form12BA.
• The employee’s name, designation, and PAN are provided.
• The financial year to which the information relates is also shown in Form12BA.
• Total tax deducted
• TAN

Applicability of Form 12BA:

• Form12BA should be issued only if an employee’s salary exceeds ₹150,000. For salaries below ₹150,000, the perquisite information already included in ‘Part B’ of Form 16 is sufficient, so there is no need for a separate statement like ‘Form 12BA’. Essentially, Form 12BA is another form issued primarily for perquisites.Therefore, Form 12BA is solely an additional document intended specifically for perquisites.
• It Includes  wages, allowances, salaries, allowances, or any payment from one or more employers.
• The exceptions are affordable scholarships, without college or retirement benefits, employer contributions to alimony, discounts, credits for specific exemption from inclusion as allowance, lump-sum payment of service received upon termination of employment, premium, or voluntary retirement , 1999 . Voluntary employment benefits, pension commutations, and similar funds.
• Form12BA should be issued even if there is no perquisite. The employer can show in Form12BA that the employee did not receive any perquisite.

The Significance of Form 12BA:

• The following is a discussion of the particular importance of Form12B for new employers and employees.
• New appointees must submit Form12B and other investment-related documents by March 31. However, it is important to ensure accuracy before submission to ensure the transaction quickly.
• Form12B with information about the new employee’s past salary and deductions proves useful to the new employer. Consequently, it simplifies the process by which companies accurately deduct TDS from the gross annual salary of an employee.

How to Fill the Form 12BA:

• The following information must be filled in when completing this form.
• Give the name and location of the previous organization.
• Duration of employment should be indicated.
• The pay breakdown encompasses HRA, DA, leave encashment, and other benefits.
• Expenses under section 80C include things like life insurance premiums.
• Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) of the previous employer can be found on the payslips.
• Earnings accumulated during the fiscal year prior to joining the new organization.
• Information about the employer’s provision of rent-free housing is necessary for the first annexure. This includes details on both furnished and unfurnished apartments, as well as any requirements for furnishing. The second annexure includes information from the former employer, such as a conveyance allowance and other similar incentives.

Difference between Form 12B and Form 12BA:

• As both Form 12B and Form12BA are governed by the same Rule No., Rule 26, individuals often find it confusing to distinguish between the two.
• When a salaried person shifts to another company during the financial year, he has to fill up Form 12B and submit it to the new employer, giving details of salary income, TDS deductions and so on. In contrast, Form12BA provides a complete breakdown of all perquisites, benefits, and other non-salary income.
• Form12BA details the benefits to be provided by the employer to the employee, while Form 12B is a statement to be provided to the new employer if the employee changes jobs during the financial year.

How to Download Form 12BA:

• If the employee’s salary exceeds ₹1.5 lakh, it is mandatory for the employer to issue Form 12BA. Form12BA with Form 16 must be issued by the employer to the employee. Here are the steps to download Form12BA.
• Visit the official website of the Income Tax Department and login with your credentials.
• Go to the “Downloads” section and select “Income Tax Forms”.
• Enter the necessary information and proceed to download the configuration file.
• Extract the files to your system.

Conclusion:

Form12BA and Form 16 are two important documents for individual salaried persons. Form 12BA is a part of Form 16 Annexure, which gives details of perquisites or fringe benefits granted to employees during the financial year.